Condor Gold hoping to conclude sale of La India "in the new year"
London, UK
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December 05, 2023 12:19 PM Eastern Standard Time
Condor Gold PLC CEO Mark Child provides Thomas Warner from Proactive with an update on the company's efforts to sell its La India Gold Project in Nicaragua. The update follows news that Condor Chairman Jim Mellon has invested £1 million to extend the company's financial runway in support of a sale process that he still describes as "impressive".
Despite active discussions with potential buyers, including eight companies under non-disclosure agreements (NDAs) and three site visits, a final sale agreement has not been reached, primarily due to pricing considerations.
Child emphasises the company's commitment to maximising shareholder value and outlined his current engagements in Nicaragua, including meetings with the Chinese Embassy. He acknowledges the geopolitical challenges associated with operating in Nicaragua, particularly due to U.S. sanctions, but stressed the government's supportive stance towards mining and the country's stability compared to other regions.
The CEO also discussed Condor Gold's alternative strategies, including smaller-scale operations and a pilot plant, but the board currently prefers to sell the assets. He pointed out the project's economic viability, citing the feasibility study's projection of 80,000 to 250,000 ounces of gold per year at a cost significantly lower than the gold price. Child remains optimistic about the project's future, expecting increased interest in 2024 due to favourable gold market trends and potential mergers and acquisitions in the sector.
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